Modi, Trump Share Warm Words as US-India Trade Talks Face Strain

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Modi, Trump Share Warm Words as US-India Trade Talks Face Strain

Washington, D.C., USA:  Prime Minister Narendra Modi received warm birthday greetings from former US President Donald Trump on September 17, even as trade tensions between New Delhi and Washington continue to simmer. Trump also commended Modi’s role in pushing for an end to the ongoing Russia-Ukraine war.

On Truth Social, Trump described his phone call with Modi as “wonderful,” thanking the Indian leader for his support in efforts to halt the conflict. He added that Modi was doing a “tremendous job.”

Responding on X, Modi expressed gratitude for Trump’s wishes. He reaffirmed his commitment to strengthening India-US ties and emphasized support for a “peaceful resolution of the Ukraine conflict.”

Relations between the two nations have been on edge since Trump raised tariffs on a wide range of Indian exports to 50 percent last month. The move was seen as retaliation for India’s continued purchases of Russian crude oil.

White House officials have alleged that Indian refiners are making undue profits from discounted Russian oil and argued that such imports indirectly help fund Moscow’s war.

Still, in recent days, leaders from both sides have struck a more conciliatory tone, reaffirming their willingness to push forward with negotiations.

On September 16, trade representatives from India and the US met in New Delhi. The American delegation was led by Brendan Lynch, Assistant Trade Representative for South and Central Asia.

According to a statement from India’s Commerce Ministry, the talks highlighted the “enduring importance” of bilateral trade. Both sides agreed to step up efforts to secure an early, mutually beneficial trade agreement.

Despite India being among the first countries to enter negotiations with Washington, it has yet to secure a deal that reduces tariffs. Exporters have warned that higher duties could lead to cancelled contracts and job losses.

The situation has become more complex as Trump has linked trade duties to geopolitical issues, doubling tariffs on Indian goods from 25 percent to 50 percent.

Trade analysts caution that while dialogue is ongoing, a breakthrough remains challenging. “Progress depends on the US rolling back the oil-related 25 percent tariff. Without that step, an agreement is neither politically nor economically feasible,” Ajay Srivastava of the New Delhi-based Global Trade Research Initiative observed in a note dated September 16.

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